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Ecuador

Guayaquil Wastewater Management AF (P165716)

Executive summary of the Environmental and Social Impact Assessment

March 2018

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Introduction

The proposed activities would constitute and additional financing (AF) for the Guayaquil Wastewater Management Project (Project ID P151439, IBRD-8505-EC). The proposed AF seeks to scale-up the Parent Project’s investments, expected results and impact. Particularly, proposed AF activities would complement investments contemplated under Interagua’s fourth 5-year investment plan as to ensure that, by 2023, as to ensure that 100 percent of the wastewaters generated by all 904.000 households located in the northern macro-wastewater basin of the city are collected and appropriately treated. Similarly to the Parent Project, the AF would finance the costs associated with the extension of the sewer network to reach unserved neighborhoods of the northern basin of the City (Pascuales and Juan Pablo II) and the installation of additional sewerage household connections as to reach a 100 percent sewerage service access ratio in areas of the northern basin covered by the sewer network (Component 1 activities); and the construction of wastewater collection, conveyance and treatment facilities to treat wastewater of the northern districts of the city as to meet applicable standards (Component 3 activities). A brief description of the project can be found on chapter 6 of the executive summary.

The scale-up of activities under component 1 will increase effective access to sewerage collection services in the city of Guayaquil. The AF will finance costs associated to the installation of additional household connections and extension of the sewerage network in northern districts of the city. In the northern wastewater basin of the city, 88 percent of the households are in areas covered by the sewer network but just 83 percent are connected to the service. Most of the 9,000 families that are not connected despite having a sewer main running in front of their houses are poor households located dispersedly across different neighborhoods in this area, Flor de Bastion, Cooperativas Varias, Bastion Popular and Vergeles, and their toilets usually discharge directly to poorly constructed and maintained pits or septic tanks. As per the findings of the social survey conducted neighborhoods benefiting from Component 1 activities of the Parent Project, most of the families that have not been connected despite having the possibility and the legal mandate to do so, is mainly because of financial constraints1, technical issues2, or lack of information about their entitlement to enjoy a social tariff and/or about livelihood benefits derived from the enjoyment of an enhanced sanitation solution.

To achieve this objective, household connection costs -including the cost of indoor works like piping, flooring and sealing the septic tank– will be partially subsidized and financed by EMAPAG. Clients will pay to EMAPAG EP the nonsubsidised segment in installments through the water bill (approximately US$ 0.25 per month for 5 years). In parallel, a communication campaign will be launched to inform the beneficiaries about this initiative and its benefits and to promote improved hygiene and maintenance practices required to ensure the proper use and functioning of the sewer system. The design of this component, already adopted for the Parent Project Component 1 activities, was developed based on previous successful experiences with connection campaigns led by EMAPAG EP, which managed to increase effective access to piped sanitation up to 98 percent in other districts of the city with high poverty rates.

The AF will also finance the extension of the sewer network to serve households of the northern wastewater basin located in neighborhoods currently outside the service area. Component 1 of the AF would finance the extension of the construction of the sewer network in residential areas of the Pascuales district, as well as the installation of the household connections to reach 100 percent household connectivity rate in this district, i.e. 8,700 households.

1 The cost of the connection is US$ 600 and includes the cost of emptying and sealing of the septic tank or other on-site sanitation solution. 2 Toilets mostly located at the back of their houses or at a lower level than the condominial sewer branch.

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Households neighboring Los Merinos WWTP will also be connected to the sewer system. Juan Pablo II, an informal settlement housing 131 families, is located between the “Terminal Terrestre – Pascuales” highway and the plot where currently the Sauces-Alborada and the Guayacanes-Samanes wastewater stabilization ponds are located, which will be partially decommissioned to build in their place the Los Merinos WWTP. The land where this informal settlement and treatment facilities sit belongs to the Ecuadorian Housing Bank, a State-owned financial institution which has granted the right of usufruct of land to the Government of Guayaquil. As per local regulations, no municipal infrastructure investments are made in informal settlements. As such, Juan Pablo II streets are not paved, there is no sewer network and the population gets water at the household level through hoses connected to three public fountains. The municipal government is working on granting property rights to Juan Pablo II residents over the land where their houses are located, and Interagua will install the drinking water network in the area once this is done. The AF would finance the expansion of sewer network and household connections to serve these 120 families. Juan Pablo II would also benefit from the construction of Los Merinos WWTP and the decommissioning of the stabilization ponds, as the technology proposed for Los Merinos will significantly reduce odor emission as compared to existing treatment facilities.

Component 3 of the AF will finance the required infrastructure to collect, convey and treat 100 percent of the wastewaters generated in the northern basin of the city as to meet applicable environmental standards. Specific activities that would be financed with AF resources under this component are: (i) the transformation of the Progreso preliminary treatment plant into a pumping station collecting all wastewaters generated in north-center districts of the city (1,920 l/s) and pumping them to the new Los Merinos WWTP; (ii) the construction, using trenchless technologies, of the Progreso – Los Merinos wastewater transmission pipeline (1,100 mm of diameter, 5 Km. long); (iii) the decommissioning of the Sauces-Alborada and Guayacanes-Samanes stabilization ponds, which are currently overloaded; and the construction of the new Los Merinos WWTP, which will be designed to manage an average flow in dry and wet seasons of 4.0 m3/s and 4.9 m3/s, respectively; (iv) the construction of a sludge digester equipped with a co-generation facility to produce electrical energy; and (v) the procurement of specialized independent supervision services for the construction works described above.

The overall Project impact is expected to be positive due to the improved effluent quality that will be discharged into the Daule and Guayas Rivers and the reduction of wastewater that is presently getting infiltrated from poorly constructed septic tanks existing in households of the northern wastewater basin of the city that are not yet connected to the sewer network.

As the Parent Loan, the AF has been classified as category A due to the nature and size of the works to be financed under component 3, i.e. the construction of Los Merinos WWTP. The construction of this treatment facility will affect a house located in the area. A Resettlement Action Plan has been prepared to define the measures to be taken to compensate the affected household. Related to Component Three, an Environmental and Social Impact Assessment (ESIA) has been developed by an experienced local consulting firm, under supervision of the Empresa Municipal de Agua Potable y Alcantarillado de Guayaquil (EMAPAG EP). The remaining sections of this document present an executive summary of the final version of the ESIA for Component 3 prepared by the mentioned consulting firms.

AF financed works under component 1, particularly the extension of the sewerage network in the Pascuales district, have relatively moderate potential negative environmental impacts and can be readily mitigated with standard measures. For component 1, an Environmental and Social Management Plan (ESMP) has been developed for sewer connectivity activities, and an Environmental and Social Management Framework (ESMF) has been prepared for the Pascuales sewerage network expansion, since designs of the sewer network have not yet been finalized. As for the parent project, these two safeguard instruments have been disclosed separately from component 3 ESIA report.

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Contents Introduction .................................................................................................................................................. 2

1. General Project Information ................................................................................................................. 6

2. Legal and Institutional Framework ....................................................................................................... 6

2.1. Institutional Framework................................................................................................................ 6

2.2. Environmental Authorities ............................................................................................................ 6

2.3. Applicable Environmental Regulations ......................................................................................... 7

3. Objectives.............................................................................................................................................. 7

3.1. General Objective ......................................................................................................................... 7

3.2. Specific Objectives ........................................................................................................................ 7

4. Overview of the wastewater management system of Guayaquil ........................................................ 8

4.1. Sewerage Network System ........................................................................................................... 8

4.2. Wastewater Treatment systems ................................................................................................... 9

5. Environmental and Social Baseline ..................................................................................................... 10

5.1. Physical Environment .................................................................................................................. 10

5.2. Biotic Environment...................................................................................................................... 13

5.3. Socioeconomic and cultural environment .................................................................................. 13

5.4. Sociodemographic and economic characteristics of Juan Pablo II ............................................. 14

6. Brief description of the project ........................................................................................................... 15

6.1. Main components and location .................................................................................................. 15

6.2. Characteristics of the project ...................................................................................................... 16

6.2.1. The Progresso Pumping Station .......................................................................................... 17

6.2.2. The Progreso - Los Merinos wastewater transmission pipeline ......................................... 17

6.2.3. Wastewater Treatment Plant Los Merinos ......................................................................... 17

7. Area of influence of the project .......................................................................................................... 20

8. Environmental and Social Impact Assessment ................................................................................... 21

8.1. Pre-construction phase ............................................................................................................... 21

8.2. Construction phase ..................................................................................................................... 22

8.3. Operation phase ......................................................................................................................... 24

9. Risk Analysis ........................................................................................................................................ 25

9.1. Design considerations to mitigate identified key risk factors. .................................................... 25

10. Environmental and social management system ................................................................................. 26

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11. Environmental and Social Management Program and Associated Plans ........................................... 28

11.1. Management plans included in the Environmental and Social Management Program ............. 28

11.2. Grievance redress mechanism .................................................................................................... 29

11.3. Codes of Conduct ........................................................................................................................ 29

12. Disclosure and socialization of the ESIA ............................................................................................. 30

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1. General Project Information

Project name: “Construction, Operation and Maintenance of Los Merinos WWTP and ancillary facilities (Progreso Pumping Station and the Progreso - Los Merinos wastewater transmission pipeline)”.

Developer: Municipal Water and Sewerage Company of Guayaquil (EMAPAG EP).

Legal representative: Eng. José Luís Santos García, General Manager.

Address of the developer: Av. Francisco de Orellana y MH Alcívar, Edif. Las Cámaras Mezzanine. Guayaquil – Ecuador.

2. Legal and Institutional Framework

2.1. Institutional Framework

On April 11, 2001, the Municipal Water Supply and Sanitation Company of Guayaquil (EMAPAG-EP in its Spanish acronym) entered into a 30 years concession agreement with the company INTERAGUA, for the provision of drinking water supply, sanitary sewerage and storm drainage management services in the city of Guayaquil. The Concessionaire started its operations on August 9th, 2001. Particularly, and according to article 4.2.2.1 of the Concession Agreement, titled "Collection, Treatment and Final Disposal of Wastewaters", the Concessionaire is responsible for the operation and maintenance of existing wastewater collection, pumping, conveyance and primary treatment facilities.

The concession agreement stablishes a limit to the financial profit made by INTERAGUA for the provision of water and sanitation services in the city, and the obligation of the concessionaire to invest the remaining revenues in the improvement and expansion of the city's drinking water, sanitary sewerage and storm drainage systems. However, the investment needed to achieve universal access to these services in the city, exceeds the financial capacity of the concessionaire, and consequently, the Municipality of Guayaquil complements the investments made by INTERAGUA with infrastructure investments funded with municipal fiscal resources that are channeled through EMAPAG-EP. In this context, EMAPAG-EP is currently negotiating a loan agreement with the International Bank for Reconstruction and Development -IBRD- (World Bank) to finance the project titled "Construction, Operation and Maintenance of the Los Merinos WWTP and Ancillary facilities (Progreso Pumping Station and Progreso - Los Merinos wastewater transmission pipeline)". EMAPAG-EP will be responsible for the administration of the corresponding construction and construction supervision contracts. Once the concerned infrastructures are commissioned and incorporated to the sanitary sewerage system, the Concessionaire will be responsible for their operation and maintenance.

2.2. Environmental Authorities

Since, as per the Constitution of the Republic of Ecuador the water and sanitation sector is considered an strategic sector; the concerned works could imply high risk and environmental impacts; and the developer is part of a municipal authority, according to the Unified Text of Environmental Secondary Legislation (TULSMA in its Spanish acronym), the Environmental Authority responsible for the oversight of the project is the Ministry of Environment of Ecuador-MAE (the National Environmental Authority), through its Zone 5 - Guayas Provincial Office. The MAE is responsible for the corresponding regularization process and issuance of the environmental license for the " Construction, Operation and Maintenance of the Los Merinos WWTP and Ancillary facilities (Progreso Pumping Station and Progreso - Los Merinos wastewater transmission pipeline)".

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2.3. Applicable Environmental Regulations

The legal and regulatory framework for the development of the Environmental and Social Impact Assessment (ESIA) for the " Construction, Operation and Maintenance of the Los Merinos WWTP and Ancillary facilities (Progreso Pumping Station and Progreso - Los Merinos wastewater transmission pipeline)" is defined by:

• The Constitution of the Republic of Ecuador;

• International Agreements signed by the Government of Ecuador related to the Environmental Management;

• Organic Environmental Code;

• Environmental Management Law;

• Environmental Pollution Prevention and Control Law;

• Health Organic Law, Decree 3516: Unified Text of the Secondary Environmental Legislation;

• Forest and Natural and Wild Life Areas Conservation Law;

• Organic Law for Water Resources Management and Water Resources Use;

• Health and Safety working environment improvement regulations;

• Regulations for the application of social participation established in the Environmental Management Law;

• Other applicable laws, codes, ministerial resolutions, agreements, environmental standards and INEN norms.

Since the Project is financed by IBRD, applicable World Bank environmental and safeguards policies and rules must be followed. These are:

• Environmental Evaluation Operational Policy (OP) 4.01, dated January 1999;

• Natural Habitats OP 4.04, dated June 2001;

• Pest Management OP 4.09

• Indigenous Peoples OP 4.10, dated July 2005;

• Involuntary Resettlement OP 4.12, December 2001;

• OP 4.09 Pest Management, December 1998.

3. Objectives

3.1. General Objective

This ESIA aims to identify environmental and social risks and evaluate the potential direct, indirect or cumulative environmental and social impacts of the activities to be performed for the Construction, Operation and Maintenance of the Los Merinos WWTP and Ancillary facilities. The ESIA includes an Environmental and Social Management Plan (ESMP), a management tool establishing programs, procedures, practices, measures and actions required to prevent, mitigate, control, repair, restore, and/or compensate identified significant negative environmental or social impacts.

3.2. Specific Objectives

- Identify the applicable environmental and social regulatory framework; - Define the areas of direct and indirect influence of the Project; - Characterize current environmental conditions in the area of influence, particularly those related

to physical, biotic, social, cultural and economic aspects (baseline); - Identify and evaluate significant direct and indirect environmental and social impacts associated

with the construction, operation and maintenance of the proposed infrastructure;

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- Assess Project’s compliance with applicable standards established by the legislation, rules, regulations and policies;

- Establish in an ESMP, programs, procedures, measures, practices and actions meant to prevent, mitigate or control, repair or restore, and compensate significant Project impacts in order to maximize the expected benefits, while avoiding or mitigating impacts on local communities and ecosystems located in the area of influence;

- Identify the parties responsible for the implementation and funding of defined programs; - Integrate the Project into existing social dynamics, ensuring the participation of local communities

and Project stakeholders and the consideration of their criteria, needs and concerns in the design and operational procedures of the proposed facilities.

4. Overview of the wastewater management system of Guayaquil

4.1. Sewerage Network System

The sewerage system of the city of Guayaquil comprises 3,926 km of sewer mains and 61 wastewater pumping stations, covering 70% of the area of service of the Concessionaire. The city has segregated wastewater sewerage and storm drainage systems. The sewerage networks discharge to the Daule and Guayas rivers while storm drainage system discharges are mainly concentrated in the Estero Salado estuary. Guayaquil generates a wastewater flow of approximately 280,000 m3/day (3.24 m3/s) during the dry season and 350,000 m3/day (4.05 m3/s) during the rainy season.

As a consequence of the location of the city with respect to the Daule-Guayas Rivers and the Estero Salado and the advanced age (estimated between 30 and 50 years old) and deteriorated condition of the existing network, there are considerable infiltrations of groundwater in the sewerage system. Likewise, sea tidal influence on the river level, with oscillations of up to 4 meters, conditions the operation of the sewer system, which cannot discharge to the river by gravity during high tide periods. During these periods the operator is forced to limit discharges using control valves, and wastewaters temporarily accumulates in the sewerage network located upstream of discharge control structures.

Most of the wastewaters in the city are discharged untreated or with very limited treatment to the Guayas River through discharges in Progreso and Pradera (preliminary treatment), and the Guasmo (untreated) subaquatic outfall. However, due to the great dilution and self-purification capacity of the Guayas River (average flow during the dry and rainy season are 500 and 2,200 m3/s respectively), wastewater discharges do not have a significant impact on dissolved oxygen levels in the river. The greatest effects of raw sewage discharges in the Daule and Guayas rivers are aesthetic and bacteriological contamination; however, there are several sources of pollution along the basin of these rivers.

The water quality of the targeted section of the Daule and Guayas rivers (from La Toma to Las Esclusas) is affected by the discharges and activities happening upstream of the City of Guayaquil, where agricultural, mining, and urban wastewater discharge activities are found. The flow of the Daule river is regulated by the Daule-Peripa dam, a multi-purpose water storage facility used for irrigation, water transfers and hydropower generation. The control and environmental regulation of activities performed along the Daule and Guayas rivers falls under the responsibility of the national and several municipal environmental authorities, including the municipality of Guayaquil, that are located along the concerned rivers. Likewise, the quality of the river at the targeted section of the rivers is affected by discharges and activities located downstream, as the river is influenced by sea tides.

The waters of the receiving bodies, Daule and Guayas, are used for the following legal and illegal purposes:

- Receiving solid and liquid waste discharges (non-stipulated, determined as non-compliance). - Navigation and fluvial transport (stipulated).

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- Landscape and Tourism (stipulated). - Preservation of aquatic and wild life (stipulated). - Recreation with secondary contact (stipulated). - Electricity generation and industrial uses (stipulated).

4.2. Wastewater Treatment systems

Faced with the situation described above, EMAPAG and INTERAGUA have taken concrete measures to improve the sanitary conditions of the city. Particularly these two organization are developing the works required to expand the sewerage network, install household connections and construct wastewater treatment facilities as to ensure the collection and the treatment of 100 percent of the wastewaters generated in the city of Guayaquil. These works are being developed following the 2011 Drinking Water and Sewerage System Master Plan. A brief description is included bellow of the six wastewater catch-basins into which the wastewater collection and treatment systems will be reorganized, as a result of the implementation of the mentioned master plan:

i. LAS ESCLUSAS WWTP, currently under construction with World Bank and European Investment Bank (EIB) financing. The wastewater catch-basin associated with this treatment facility has an area of 5,913 hectares and will provide services for a population of around 1,500,000 people.

Figure 1: Guayaquil's wastewater catch-basins

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Wastewater collected in this basin are discharged with no or very limited treatment through La Pradera preliminary treatment station (mechanical preliminary treatment) and the Guasmo H pumping station and associated subaquatic outfall. Wastewaters currently discharged though La Pradera and Guasmo H will be treated in Las Esclusas WWTP once it will be in operation.

ii. WWTP LOS MERINOS, which final design is being finalized. Works are scheduled to start on 2019. The wastewater catch-basin associated this facility has an area of approximately 10,997 hectares, serving a population of 904,537 inhabitants (as of 2015). This facility will treat waste waters generated in the following subsystems/districts: Progreso, Garzota, Sauces-Alborada, Guayacanes, Guayacanes-Samanes, Pascuales, Mucho Lote, Orquídeas, Mucho Lote II, Inmaconsa and Flor de Bastión. Currently, the waters of two of these sub-basins, i.e. Inmaconsa and part of Pascuales, are not collected. In the rest of the sub-basins wastewaters are collected and sent to the following treatment facilities:

o Wastewaters collected in the Progreso sub-basin (3,205 ha), are subject to a mechanical preliminary treatment in the Progreso preliminary treatment facility (coarse screening and grit removal) and are discharged into the Daule River through a subaquatic outfall. The Progreso treatment facility will be transformed into a pumping station driving wastewaters collected in the associated basin to Los Merinos WWTP.

o Wastewaters from Garzota and Sauces-Alborada (996 ha) basins are been conveyed to the Sauces-Alborada stabilization ponds, although 70 percent are discharged untreated through a bypass, to prevent overloading and affect the performance of the treatment facility

o Wastewaters from Guayacanes, Guayacanes-Samanes, part of Pascuales, Flor de Bastión and Mucho Lote II (4,896 ha) are taken to the Guayacanes-Samanes stabilization ponds, which are receiving 1200 l/s despite being designed for a hydraulic load of 760 l/s.

o Wastewaters from Mucho Lote (842 ha.) and Orquideas (142 ha.) are taken to two treatment plants (facultative lagoons) named after the associated sub-basin. These plants are also overloaded.

iii. PUERTO AZUL ARTIFICIAL WETLAND TREATMENT FACILITY. The plant started to operate in 2017.

iv. VIA A LA COSTA WWTP. Its construction is planned as part of the fifth five-year investment plan of the Concessionaire (2021). A plot of 20 hectares have been assigned for this purpose.

v. WWTP MI LOTE. This plant is being expanded and retrofitted as to receive all wastewaters generated in the Sistema 3 catch-basin.

Figure 1 above shows the location of the six wastewater catch-basins and associated treatment facilities. The North Subsystem Sanitation Project, subject of this EIAS, is an important component of the Greater Guayaquil Sanitation Program.

5. Environmental and Social Baseline

5.1. Physical Environment

Climate and meteorology. The climate of the City of Guayaquil is influenced by its equatorial location, which results in warm temperatures during most of the year. Its proximity to the Pacific Ocean determines an influence of the Humboldt (cold) and El Niño (warm) currents, resulting in two distinct weather periods: a dry season and a rainy season. The first takes place from June to December, and the second between January and May. Approximately 97% of the annual precipitation (1345 mm accumulated) occur during

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the rainy season. Temperature ranges between 23 and 28 °C, being the average annual temperature in the area of interest 25.4 °C. Relative humidity remains around 70 percent. Highest wind speeds range from 5.7 m/s to 8.8 m/s, being the South-West (SW) the predominant wind direction with 49.5%. The least predominant was the NORTH-WEST (NW) with a frequency of 1.25%.

Land and soil resources. The plot of Los Merinos WWTP is located on the right bank of the Daule River in a flood prone area, where the Sauces-Alborada and Guayacanes-Samanes stabilization ponds are currently located. Both treatment systems (which occupy 80% of the surface) are separated by Channel 16, a natural drain and estuary that crosses the plot. The terrain is composed of a greenish silty clay on the surface and down to 20 m depth, with layers of silt, clay and very fine estuarine sand. From there and down to 42 m deep, there is a fluvial sediments sequence consisting of loose gray and light brown sands. At 42 m., sandstone rocks and fine volcaniclastic breccias of the Cayo Formation can be found.

Air contamination. The Sauces-Alborada and Guayacanes-Samanes stabilization pond systems are two sources of odors emissions due to the release of H2S. Although the levels of H2S detected are below the threshold considered dangerous for health, 89% of the population of influence of the project report perceiving bad odors during the day, and 78.2% of them attribute it to sewage. 23.8% and 28.4% consider these odors annoying and very annoying respectively. According to the dispersion model developed, the area in which the concentration of H2S in the air is greater than 0.75 ppm for the period of one hour, a value considered as the odor detection threshold, extends up to a distance of 2 km. The concentrations

Figure 2: results of the H2S dispersion model

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of particulate pollutants in the air of the area of influence of the project, are substantially below the permissible limits.

Hydrographic system. The area in which the Los Merinos WWTP and Ancillary facilities Project will be implemented is located in the Guayas river basin, which has an extension of 34,000 km2 (40,000 km2 if the Santa Elena Peninsula in included), the most important basin of the Pacific Coast of South America. The Guayas River (with a minimum flow of 250 m3/s and maximum flow of 5000 m3/s) comprises three main subsystems: the Daule River, the Vinces River, and the Babahoyo River. Los Merinos WWTP is located on the banks of the Daule. The Daule subsystem is located at the western part of the Guayas river basin (13,400 km2) and its source is in the Santo Domingo de los Colorados hill. It represents 40% of the flow of the Guayas River, and its main tributaries are: the Peripa, Puca, Congo, Colimes and Pedro Carbo rivers. The Daule river flow is regulated by the Jaime Roldós Aguilera Dam (Daule-Peripa), which main purpose is:

(i) to serve as the main source of water for a number of water transfers, being the main ones the La Esperanza and Poza Honda dams water transfer (Manabí Province), the Chongón water transfer (Santa Elena Peninsula), and to other systems such as Daule-Vinces (DAUVIN), and Pedro Carbo;

(ii) hydroelectric generation (approximately 213 MW); (iii) Flood control; (iv) Irrigation of the Daule sub-basin; (v) Saline intrusion control; (vi) Control of ecological flows

The estuarine system of the Guayas River has high dilution, dispersion and self-purification due to periodic entrance of marine water during the high tides and the consequent drag of particles towards the ocean during low tides.

Water quality of the Daule river. Water quality monitoring campaigns undertook in the Daule river show low levels of dissolved oxygen, especially near the Daule-Peripa Dam. Conductivity increases downstream, as a result of the influence of the tides, but not exceeding 180 uS/cm. Therefore, the river is classified as a fresh water body. Nutrients concentrations are above those considered normal for non-polluted waters, posing a risk of eutrophication. High fecal coliform concentrations are also observed along the river, even upstream of Guayaquil. In the vicinity of the project area, salinity values vary between 8,000 and 2,000 mg/l, depending on the tides; the concentrations of fecal coliforms are on the order of 104. Suspended solids concentration varies significantly, with averages of 266 mg/l at high tide and 402 during low tide periods (maximum observed values were 1,170 and 2,230 mg/l for low tide and high tide respectively). BOD5 concentrations range between 0.5 and 3.7 mg/l, considered normal values for rivers with moderate to low pollution levels.

Current uses of water in the study area and its area of influence. Several important urban settlements can be found along the Daule river from the Daule - Peripa Dam to the municipality of Guayaquil, such as: Pichincha, El Empalme, Balzar, Colimes, Palestina, Saint Lucia, Daule, Nobol, Petrillo and Puerto Lucia. Water uses observed in the Daule basin and in the estuarine zone, are: (i) municipal water supply; (ii) irrigation and water supply for livestock (with livestock and agricultural activities performed directly in low basins areas and floodplains); (iii) Industrial water supply (mainly for food processing and chemical industries, mainly areas near to the city of Guayaquil); (iv) transportation (low vessels traffic and of shallow draft); and (v) recreational uses (swimming and bathing areas in meanders and other sediment deposit sites).

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5.2. Biotic Environment

Life zone (bioclimatic). The study area is in a transition zone between the Herbazal Ribereño (riparian herbage) and Matorral Seco (dry scrub) ecosystems. The lowlands riparian herbage can be found in areas exposed to river flooding during the rainy season, forming groups of non-graminiform herbaceous plants of smaller size on the lower courses of the Daule, Babahoyo and Taura rivers. The lowlands dry scrub grows in places close to the sea, at altitudes of less than 100 meters above the sea level. The vegetation is dry, squat, and can reach up to 6 meters in height. Columnar cactus can be found in the province of Manabí in San Mateo, Manta, Puerto Cayo, Punta Piquero, Salitre, Machalilla, Los Frailes, Isla Salango and Isla de La Plata, on the plain of the lower basin of the Daule River, at altitudes of less than 100m.

Flora. The area where Los Merinos WWTP will be located has been completely intervened by human activity. Saman trees (Samanea saman) were planted to separate the existing oxidation reservoirs, leaving a small remnant of mixed vegetation of Majado (Ibiscus spp.) and water liana (entada gigas) that have covered many of the original trees located on the banks of the estuary that crosses the plot. No endemic species nor endangered flora species have been observed.

Fauna. At a regional level, the area of interest belongs to the Tumbesina Region, which is located between the Coast and the Andes and covers the area from the south of the Esmeraldas Province to the Department Lima Department in Peru. In addition, the project area is located in the proximity of Los Samanes National Recreational Area, a flooded area, where local and migratory aquatic avifauna species congregate. Wild mammals can be found in Los Samanes National Recreation and surrounding areas, mainly the crab-eating raccoon (Procyon cancrivorous); which feeds on the fiddler crabs (Uca spp.); the opossum (Didelphis marsupialis); the anteater (Tamandua mexicana) and the Guayaquil squirrel (Sciurus stramineus), a quasi-endemic specie. It has been reported that bats (Myotis spp.) are observed at night, in addition to the presence of the rats and cats. Birds observed in the project area were mainly aquatic habitat species with the predominant presence of hundreds of individuals belonging to the Anatidae family (Black-breasted Whistler Duck - Dendrocygna autumnalis); the Jacanidae family represented by the Wattled Jacana (Jacana jacana), the Himantopodidae family (Himantopus mexicanus) and the Columbidae family (doves and tortolitas) that have granivorous feeding habits. Among the carnivorous, we observed the Bebehumo Hawk (Accipitrido). Quasi-endemic species such as Homero del Pacifico (Furnarius cinnamomeus), Black matorralero (Dives warzseviczi), Parakeet of the Pacific (Forus coelestis), and Tortolita Ecuatoriana (Columbina buckelyi) have been observed as well as the migratory specie Colador Sandpiper (Actitis macularia). The species identified are in a “low concern” conservation status. Iguanas were observed around the reservoirs, as well as aquatic insects that serve as food for the birds.

5.3. Socioeconomic and cultural environment

Population of interest. If the area of direct influence (ADI) of the WWTP is defined as the one where H2S concentration exceeds the 0.75 ppm threshold (considered as the perceptible odor threshold), it would be integrated by the following neighborhoods/districts: Juan Pablo II, Limonal, Guayacanes, Samanes, Sauces, Brisas del Río, Guayas River in the Guayaquil municipality; and private urbanizations of Samborondón located on the Daule river bank. According to latest census data, 84,465 people lived in these areas in 2010. On that same year, the population living in the Project’s indirect influence area (defined as the zone within which current H2S concentrations range between 0.25 and 0.75 ppm) was of 91,049 (85,529 living in Guayaquil and the rest in Samborondón). Guayaquil’s average population growth rate between 2001 and 2010 was 1.53% per year. Working age population (between 15 and 65 years of age) represent 71.3% of the ADI population, and the masculity ratio (number of men per 100 women) is 88 percent.

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Economic activities in the area of influence. 48.4 percent of the 1,478 people over 12 years of age interviewed in the ADI as part of the baseline study work, and 47.3 percent of the working population are women. Out of the 716 people who declared owning assets, 554 answered about their weekly income, which averaged US$ 139.02. It is estimated that on average, there are 1.6 income-generating family member per household in the ADI.

Housing characteristics and basic services. The exterior walls of 99% of the houses located in the ADI are made of ceramic bricks concrete blocks or concrete. 96.3% of the houses receive water from the public network, and 98.5% are connected to the sewerage network. 99.7% are connected to the electricity grid.

Public health in the area of influence. The main causes of hospitalization among the population of Guayaquil and Samborondón are cesarean delivery and spontaneous birth; followed by diarrhea diseases and gastroenteritis of infectious origin. 36.1 percent of the households surveyed declared that at least one of their members was ill during the last month (December 2017), being the most recurrent diseases the flu, sore throats and stomach infections. Interviewed households declared that most frequent diseases were related to the respiratory system (flu, cough, fever, headache) and intestinal infections. There is no health facility with inpatient service in the ADI, but there are two health centers -a public and a private one- without hospitalization.

Education in the area of influence. The illiteracy rate in the area of influence is 0.7%. The predominant level of education is higher education, followed by secondary education, with better educational levels being observed in the area of indirect influence. There are 18 educational centers in the area of influence: (i) Guayaquil Naval Academy; (ii) Legos; (iii) Paul Rivet; (iv) Republic of El Salvador; (v) No. 247 Carlos Garbay Montesdeoca; (vi) No. 12 Initial Clementina Triviño; (vii) Bautista Guayacanes; (viii) Santa Paula; (ix) Uzcategui; (x) Olympia; (xi) José M. García; (xii) José Antonio Campos; (xiii) Province of Bolívar; (xiv) Inves Ciencias; (xv) Province of Carchi; (xvi) No. 183 Enma Esperanza Ortiz Bermeo; (xvii) Particular Guayacanes; and (xviii) Abel Gilbert Ponton.

Social organization. Neighborhood associations in the area play more of an informative and social role (parties); whereas, the efforts of the few “housing cooperatives” (informal settlements) located in the area of influence, i.e. El Limonal and Juan Pablo II stage 1 and 2, are focused on obtained property rights over the land where their houses sit and gaining access to municipal basic services.

Analysis on indigenous peoples. Only 0.8% of the population in the area of direct influence of the project considers themselves indigenous people. Statistical data and the field survey results show no evidence on the existence of organized indigenous communities.

5.4. Sociodemographic and economic characteristics of Juan Pablo II

Location. The Juan Pablo II cooperative is located between the Terminal Terrestre - Pascuales highway and the Sauces-Alborada stabilization ponds site (the future location of Los Merinos WWTP).

Population size and characteristics. There are 131 houses, 129 occupied, with 523 people present and 2 occupied with absent persons at the time when the survey was conducted, one of which is inhabited by family of eight members, according to the president of the Cooperative. The population between 15 and 64 years of age represents 69.2 percent of the population. The masculinity ratio of the cooperative is 95.1%, and the level of illiteracy is 1.8%. Regarding the level of education, secondary education predominates followed by primary education. 57.6% of the population declares having a job, with a weekly average income of US$ 115.85.

Housing and basic services. 100% of the houses are made of bricks or blocks. 65.9% of the population of Juan Pablo II declared owning the house they live in, 20.95% declared living in a “borrowed” house, and 13.2% in a rented house. The average number of occupants per dwelling is 4.05, and four houses were

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observed to be severely overcrowded. Juan Pablo II inhabitants get the drinking water at the household level through hoses connected to public three standpipes installed in the cooperative by INTERAGUA (only one household declared relaying on water tankers) and all households except two, which are connected to the sewerage network, declared having a flush toilet connected to a septic tank. 54% have a landline and 61% have internet at home. 20% said they had made some improvement in their homes in the last 12 months.

Land tenure in the Juan Pablo II. Juan Pablo II is an informal settlement sitting on a piece of land owned by the Ecuadorian Housing Bank (Banco Ecuatoriano de la Vivienda- BEV). In the 90s, BEV granted a perpetual right of usufruct over the land to EMAPAG EP for the construction of the Sauces-Alborada stabilization ponds system. Some years after the plant was constructed Juan Pablo II population started to settle in the area located between the Terminal Terrestre - Pascuales highway and the stabilization ponds. The 1st Stage of Juan Pablo II was integrated by 145 houses. As part of the project for the construction of the bridge that will connect Guayaquil and Samborondón, 14 houses were expropriated and will have to be totally or partially demolished3. Although the construction of the bridge is managed directly by the municipal government and it has no relation with the provision of water supply and sanitation services, issues related to resettlement and compensation of affected households were managed by EMAPAG-EP. Affected households received economic compensations ranging between US$ 20,000 to US$ 40,000. Some of the affected families moved to live with relatives in the area and others relocated to other neighborhoods. The residents of Juan Pablo II, Stage 1, hope to obtain property rights over the land where they have built their homes with the support of local authorities, as the Municipal Government has express its willingness to analyze this possibility and has recently granted property rights to homeowners of El Limonal and Juan Pablo II Stage 2 areas. The construction of Los Merinos WWTP access road will affect one of the houses of Juan Pablo II Stage 1, which belongs to a family of eight. The house has three floors and is in Block N, occupying lots 1 and 8 of the Cooperative. The compensation to the owners of the property will be determined in accordance with the requirements established by World Bank’s Operational Policy 4.12 on Involuntary Resettlement. compensation payments will be made to the family prior to their relocation.

6. Brief description of the project

As the urban population of the city of Guayaquil grows, the volume of wastewater and organic waste that pollutes the environment increases. In this context, it is key to take measures to fight environmental pollution to:

- Prevent diseases and protect the health of the population; - Prevent nuisances; - Maintain the water for bathing and other recreational uses clean; - Keep the water required to preserve natural habitats also clean; - Preserve water resources to satisfy future potential demand for touristic, industrial and agricultural uses; - Prevent the silting up of navigable channels.

The proposed Project will help meeting these objectives.

6.1. Main components and location

The Project (North Subsystem) comprises three (3) main facilities:

- The Progreso Pumping Station;

3 9 houses have already been demolished and the remaining 5 are currently being dismantled by their owners.

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- The Progreso - Los Merinos wastewater transmission pipeline; and - Los Merinos WWTP.

The North Subsystem also requires the closure and total abandonment of the Sauces-Alborada stabilization ponds and partial closure of Guayacanes-Samanes stabilization ponds, since Los Merinos WWTP will be built in its current location. Figure 3 shows the general outline of the North Subsystem project area.

Figure 3: general layout of project infrastructure

Figure 4 shows the general layout of Los Merinos WWTP and defines the area of the lot where the WWTP will be constructed.

Figure 4: Los Merinos WWTP general layout

6.2. Characteristics of the project

The main facilities of the Northern Subsystem have the following characteristics:

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6.2.1. The Progresso Pumping Station

The proposed Pumping Station will have a wet / dry well configuration with 5 vertical 350 HP centrifugal pumps that will be located at the lowest level of the dry well. The pumping station capacity will be 1940 l/s, value determined based on population growth projections to 2045, combined with estimates of the inflow during dry / wet seasons conditions. Wastewater inflow will be subject to a preliminary mechanical treatment (screening) at the entrance of the wet well, as to prevent damage to the pumping units. The facility will have three channels and two grids. Odor control units will be installed to mitigate possible odors associated with raw wastewater. The fetid air will be extracted from the area of the grids, as well as from the wet well, using exhaust fans and ducts to drive H2S to the odor control unit to be treated.

6.2.2. The Progreso - Los Merinos wastewater transmission pipeline

The project includes the installation of a transmission pipeline to convey wastewater pumped in Progreso (up to 1.94 m3/s in the wet season and 0.61 m3/s in the dry season) to Los Merinos WWTP. The transmission pipeline will have a total length of approximately 5,000 meters. The pipeline will be built using the pipe jacking method, a tunneling mechanism by which pipe segments are pushed forward with hydraulic power from an access chamber (an access chamber is required at every change of direction or every 200 m. approximately). Simultaneously, the residual soil removed from the excavation is extracted. Given that construction activities will be carried out below ground level, the work area is limited to the launching and reception chambers, minimizing impacts on traffic conditions and on residential areas close to the works. This technology has the following advantages: (i) Minimum surface excavation; (ii) Reduced interference with traffic; (iii) Minimum noise and dust environmental pollution; (iv) Lower costs due to expropriations, compensation, reconstructions; (v) The internal finish is very uniform, which improves the flow conditions.

1 Control room

2 Crane

3 Pipes

4 Separation plant

5 Mixing plant

6 Supply pump

7 Shield

8 Intermediate jacking station

9 Main jacking station

10 pillar

Figure 5: diagram on the pipe jacking construction methodology

6.2.3. Wastewater Treatment Plant Los Merinos

Los Merinos WWTP will be located in the current location of the Sauces-Alborada (STSA) and Guayacanes-Samanes (STGS) stabilization ponds systems. The STSA, designed with a theoretical treatment capacity of 254,251 liters/second, comprises a set of five facultative ponds, three maturation ponds and two anaerobic ponds, which extend across an area of approximately 8 hectares. The system treats effluents collected from El Tornillo pumping station as well as sludge coming from the Guayacanes-Samanes

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stabilization ponds, which is dehydrated in one of the facultative lagoons that is used specifically for this purpose. Treated effluents in the STSA are ultimately conveyed through a bypass into two channels and finally discharged into the Daule River. Alternately, the STGS covers an area of approximately 32 hectares and receives effluents from three transmission pipes connecting to the Vergeles XII, Mucho Lote, Cerro Colorado and Guayacanes pumping stations. The STGS is composed of a total of six ponds, which are divided into two subsystems that include each an aerated, facultative and a maturation pond. In the STGS, effluents are discharged into the Daule River through three routes: (i) a pipeline that connects the intake point of the plant with the Daule River to dispose overflows in case of an emergency, (ii) drainage pipes designed to discharge effluents directly from the lagoons, and (iii) by means of a sub-fluvial outfall located at the end of the treatment system through which treated effluents are discharged into the Daule River.

These treatment facilities will be decommissioned and closed, except for the two aerated ponds of the Guayacanes-Samanes system, which will be incorporated into Los Merinos water treatment line. Los Merinos WWTP will treat the waters currently received by these two stabilization ponds systems, in addition to those coming from the Progreso, Inmaconsa, Flor de Bastion, Orquideas and Mucho Lote basins. The plant will treat a flow of approximately 4 and 4.9 m3/s in the dry and wet seasons, respectively.

The WWTP water treatment line will comprise a mechanical preliminary treatment, a chemically enhanced primary treatment (CEPT), aerated reservoirs and disinfection, with the option of adding biological treatment in the future, if necessary. Treated effluents will be discharged into the Daule River through a subaquatic outfall (2,400 mm in diameter and 200 meters of length), which has been designed for a maximum discharge of 7.89 m3 / second and will be composed of 15 diffuser ports. This treatment scheme was selected due to the characteristics of the wastewater from the contributing basin, mainly due to its low concentration of organic matter. With the proposed treatment, it is possible to obtain the standards required in the national environmental regulations. An important aspect of this type of treatment is its flexibility, since the chemicals (flocculant and coagulants) dosing can be adjusted to the variable characteristics of the raw wastewater in different periods of the year and the life of the facility. Moreover, this solution allows for a secondary treatment process to be added to the water if environmental regulations become stricter in the future. Main features of the water and sludge treatment lines and ancillary facility of the WWTP are summarized in the table below.

Table 1: main features of Los Merinos WWTP water and sludge treatment lines

Facilities and sub-processes components

Raw wastewater reception chamber Raw wastewater reception well

Preliminary treatment

New pumping station with aerated chamber for the mixing of received wastewaters

Coarse and fine screens equipped with a mechanized solid removal and compactor

mechanism Vortex desander

Sand classifier

Water treatment line

Aerated flocculation tanks and associated blowers

Primary clarifiers Aerated reservoirs system

Hypochlorite disinfection system

Sludge treatment line Gravity thickeners tanks

Anaerobic digesters Belt press dehydration system

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Ancillary facilities

Methane capture and power co-generation Odor control system (biofilters)

SCADA system Onsite hypochlorite production facility

Compact biological secondary treatment for the production of plant service water

Chamber for the reception of fecal sludge collected from septic tanks and cesspools by

tanker trucks

An important part of the treatment process relates to ensuring the safe reuse or disposal of the biosolids that are generated in the wastewater treatment process. The sludge treatment line will incorporate a primary thickening and dehydration process, followed by a sludge thickener system and a set of anaerobic digesters where the sludge will be stabilized. Methane gas generated as a byproduct of the sludge digestion process will be capture and used to generate electrical power that will be consumed at the treatment facility.

Stabilized biosolids will be hauled and discharged in Las Iguanas" municipal landfill. This site currently receives approximately 4,500 tons of solid waste per day. Works to optimize the remaining capacity of sector D of the landfill (area of the landfill where solid waste is being discharged since 2006) are currently been undertaken. The life cycle of the municipal landfill will be extended for eight more years that’s to its expansion to an area neighboring the current site called the E sector. This sector will host the cells for the disposal of the biosolids generated at wastewater treatment facilities. Currently, the operation of the sanitary landfill "Las Iguanas" maintains an environmental license since December 2013, which includes the requirement of having a compliance audit every year. This environmental license allows for the landfill to receive biosolids with the characteristics of the ones that will be generated in Las Esclusas and Los Merinos WWTPs.

Figure 6: Los Merinos WWTP treatment process diagram

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7. Area of influence of the project Areas of physical sensitivity. The domestic and industrial discharges of the City of Guayaquil have a

considerable influence on the water quality of the Daule and Guayas Rivers. Given the high dilution

capacity of these rivers (from the effect of high tidal flows) the quality of the water in the rivers remains

yet acceptable. With the development of the future Los Merinos WWTP, it is expected that discharged

effluents will be dispersed and diluted in the area close to the plant, both upstream (as result of incoming

tidal flows) and further downstream. Input of discharged flows and suspended solids following the future

operation of Los Merinos does not constitute a threat for erosion and sedimentation processes to happen

in the Daule River. The effluent flow originating from the plant will not be comparable to that of the river

or the associated with the tidal processes. The effect of suspended solids coming from the emissary will

be almost negligible as sediments will be trapped in the different tanks during the primary treatment

process. The area where the WWTP will be constructed, specifically zones adjacent to a small

drainage/estuary (Canal 16) that crosses the plot, is vulnerable to potential flooding. To mitigate for such

potential risks, the project proposes channeling the canal through a drainage duct and controlling the

entrance of tides through a system of control valves.

Sensitive area - flora. The area of interest is completely intervened as result of a change in land use and

the removal of its natural vegetation cover. However, at the site of the WWTP trees have been planted,

mainly of the Samanea saman Jacq. species, which during the process of many years have adapted the

biodiversity conditions in the area by hosting wildlife species, mainly birds in great diversity, reptiles and

small mammals. Although the project contemplates the removal of forest cover, vegetation in the

riverbanks of the Daule River will be maintained to protect from erosion processes.

Sensitive area - fauna. The area of the project considered as moderately sensitive corresponds to the 2

ha zone of Canal 16, located between the Sauces-Alborada and Guayacanes-Samanes reservoirs, and the

adjacent wetlands. This canal has a mixed vegetation formation with native and introduced species that

form a forest block, including species of flora such as the saman (Samanea saman), the shrub majada

(Hibiscus tiliaceus) and the water liana (Entada gigas). In this forest block, endemic fauna of the

Tumbesian region can be found of relevance due to the presence of 4 quasi-endemic species of birds. The

presence of these birds responds to the regional ecological dynamics (temporal and spatial), between the

Los Samanes National Recreation Area, close in proximity to the study area, the riverbanks along the Daule

and Guayas Rivers, and other neighboring areas that also serve as a habitat to these species.

Area of social, economic and cultural sensitivity. The ongoing operation of the Alborada-Sauces and

Guayacanes-Samanes stabilization ponds treatment systems generates nuisances to the surrounding

communities due to the emissions of odors. According to the air quality simulation model, the populations

affected by odors in the current situation (baseline) are mainly: Juan Pablo Segundo, El Limonal,

Guayacanes, Samanes, Sauces, Vergeles, urbanization Guayaquil Tennis, and Palmar del Río. Access roads

adjacent to the project are also heavily transited ways with significant traffic congestion during rush hours.

The roads with high social sensitivity, in case of traffic obstruction associated to construction works that

may be required to develop the project are: Narcisa de Jesús Highway, Benjamín Rosales Avenue, Las

Américas Avenue, Pedro Menéndez Gilbert Avenue and the National Unity Bridge over the Daule River.

Area of intervention. The intervention area is composed of: (i) the 49.5 ha land plot where the WWTP will

be located; (ii) the traced path for the Progreso - Los Merinos transmission pipeline, with a length of 4.9

km and a required easement of about 30 meters wide (located within the right of way of the Terminal

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Terrestre – Los Pascuales highway); and (iii) the plot of 3.77 ha where El Progreso pumping station will be

located.

Area of direct influence during the construction process comprises:

(i) The area corresponding to the implementation of infrastructure for the WWTP and

complementary works;

(ii) Area around of El Progreso pumping station, defined by a buffer zone of 100 meters radius

around this property;

(iii) Area (15 meters radius) around each reception and launching chambers for pipe jacking

activities;

(iv) Access roads to the construction sites (access to the WWTP from Narcisa de Jesus Avenue,

traced path for the transmission pipeline along the Narcisa de Jesus, Benjamin Rosales and

Pedro Menéndez Gilbert Avenues, and access to the pumping station El Progreso from the

Gilbert Avenue)

(v) Area affected by odors from the existing stabilization ponds as defined in the baseline;

(vi) Area affected of the Daule river where the water quality is affected by wastewater discharges

(1000 m upstream and downstream from the stabilization ponds’ discharge outfall);

(vii) Quarries and dumping areas used.

Area of direct influence during the operation phase is determined by:

(i) Area of the project corresponding to the Los Merinos WWTP and El Progreso pumping station;

(ii) Access roads to these infrastructures;

(iii) Residential area affected by odors (Samanes, Guayacanes, Sauces, Alborada, Juan Pablo

Segundo, El Limonal, Rio Guayas and private citadels of the Canton Samborondón)

(iv) Area affected of the Daule river where the water quality is affected by wastewater discharges

(1000 m upstream and downstream from Los Merinos subaquatic outfall);

Area of indirect influence. Comprises the entire Los Merinos wastewater sub-basin, located in the

northern sector of the city of Guayaquil, an area that will be benefited from enhanced the wastewater

collection and treatment systems. Areas of indirect influence will also be the alternate routes for vehicular

traffic during the construction process: (i) Las Américas Avenue, from the Metrovía stop "Coliseo Cerrado"

to the junction with the Narcisa de Jesús Highway; (ii) Plaza Dañin Avenue, specifically the section between

Pedro Menéndez Gilbert and Las Américas Avenues; and (iii) the Unidad Nacional Bridge over the Daule

river.

8. Environmental and Social Impact Assessment

8.1. Pre-construction phase

Expectations of the population on the impacts associated with the work. The simple fact of having large

number of people from outside the area arrive at the Project’s implementation sites to prepare for

construction works to come can alter the daily life of local residents. These activities may alarm local

people and generate expectations causing anxiety that can even affect their personal projects. During this

phase, and in order to inform the community on the construction and operation of the Project,

communication and socialization efforts will take place in the communities across the area of influence,

which will be led by the Community Development Department of the EMAPAG EP.

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Easement for the construction of the wastewater transmission pipeline. The trenchless technology

retained for the construction of the pipeline (pipe jacking) and the procurement approach envisioned

(design and build) allows for the flexibility required to minimize the impacts that the construction of the

Progreso-Merinos transmission pipeline may have on road traffic, neighbors and the businesses in the

area of influence. In particular, access chambers for pipe jacking equipment will be located in such a way

as to avoid significant impacts to businesses located along the Terminal Terrestre - Pascuales Highway

(gas station areas and others).

Full decommissioning of the Sauces-Alborada stabilization ponds system and partial decommissioning

of the Guayacanes-Samanes stabilization ponds. The expost Environmental Impact Assesment of the

Sauces-Alborada stabilization ponds (Ekopraxis, August 2017) defines an environmental and social

management plan (ESMP) with specific measures for the decommissioning of the Lagunas Sauces-

Alborada treatment system. This study is currently under review of the responsible environmental

authority. The ESMP will be adjusted to consider the partial decommissioning of the Guayacanes-Samanes

treatment system, required for the construction of Los Merinos WWTP.

8.2. Construction phase

Air emissions. Non-significant fugitive emissions will be generated in the area of intervention, as emitted

emissions are expected to be of medium intensity, local reach and controllable through prevention or

mitigation measures. The increase in emissions will be due to an expected increase in construction works

traffic, traffic congestion that maybe caused by transmission pipeline construction activities and dust

generation at construction sites.

Air quality and odors. No increase in the levels of odors is anticipated with respect to those currently

experienced as a consequence of the operation of El Progreso pumping station and the Sauces-Alborada

and Guayacanes-Samanes stabilization ponds systems.

Noise levels. The construction work will produce significant noise levels, that could reach sound pressure

levels higher than 85 dB (A) in the proximity of heavy machinery that will operate during construction.

However, it is a temporary and impact that can be mitigated through planning and correct execution of

activities, limiting operating and working hours for construction activities in certain areas of intervention.

Clearing and management of flora. The project contemplates the removal of existing forest cover in the

area of the Los Merinos WWTP. However, the existing vegetation on the shore of the Daule River will be

preserved as to protect the area against erosion and tide rise. A total of 292 trees were identified in the

WWTP area, estimating that at least 60% could withstand transplantation. State or municipal guardianship

sites are being considered as potential transplantation areas. However, it is recommended that trees to

be transplanted get relocated in lands owned or managed by EMAPAG to guarantee appropriate

maintenance and follow-up process, and thus consolidate and guarantee success of adult trees

transplantation activities.

Soil quality. Construction activities will imply hauling and disposal of soil removed as part of earthworks.

Soil waste will probably contain residual concrete and other construction materials. Excess of soil and

construction waste will be collected and transported into dumping sites. Selected sites for the final

dumping must have the required licese and permits and be designed to meet applicable standards.

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Measures described in the Environmental Management Plan shall be applied to avoid and mitigate for

possible spills of fuels, hydrocarbons and contaminated effluents on the ground.

Geological impacts, soil stability and subsidence. The choice of an inadequate construction technology

for the Progreso – Los Merinos transmission pipeline could result in impacts on existing sol conditions, as

it could cause soil instability due to the presence of clay sediments and the high level of the groundwater

table in the area. Pipe jacking technology has been thus selected as to prevent such potential impacts

from happening. The plot selected for the construction of the Los Merinos WWTP presents risk of

liquefaction. This risk will be mitigated improving soil stability and geomechanical characteristics with the

construction of a gravel column system and using deep foundations with piles for wastewater treatment

structures.

Water quality. It is anticipated that three sources of contamination could affect the quality of existing

natural water bodies existing in the project area during the construction phase: (i) effluents generated by

the concrete production unit; (ii) wastewater generated in the construction camp; and (iii) pollution

derived from increased erosion in the construction site generated by surface runoff. To mitigate these

impacts, the effluents from the concrete production unit should be treated and reused in other

construction processes (wash mixer trucks); the camp must be equipped with sanitation facilities that

must be adequately maintained; and erosion control measures (like silt fence and haybales) shall be

adopted.

Disposal of solid waste. Plans to minimize, recycle and segregate solid waste will be established so that

produced waste can be reused and disposed adequately to avoid any contamination of the soil or the

atmosphere, and prevent the spread of disease.

Construction of the drainage duct (Canal 16). To minimize the impact on the estuary named Canal 16 and

the adjacent wetlands, the alternative of partially channeling the stream in its current course with a duct

was selected over the option of diverting the existing channel towards the northern perimeter of the plot.

The selected alternative allows the channel to maintain around a quarter (100 m) of its course route within

the land plot of the WWTP in its natural original condition.

Wildlife Management. Although the WWTP is in a completely intervened area, there are cultivated

species that have harbored wildlife, mainly birds of relatively important biodiversity value, reptiles and

small mammals.

Sources of construction materials (quarries). Construction materials will mainly be supplied by local

providers and from quarries located in the Guayaquil area. These quarries must have the relevant permits

and environmental licens in place.

Transportation. There will be a temporary negative impact on road traffic in the vicinity of the Los Merinos

WWTP and El Progreso pumping station as result of construction related traffic. The development of a

Traffic Control Plan will be required to alleviate and prevent to the extent possible the generation of traffic

congestions as a consequence of construction activities, particularly along the route of the transmission

pipeline, which requires the drilling of wells for the tunneling machine approximately every 200 meters

(the wells are opened and closed as construction progresses). A significant temporally impact on traffic is

expected, since detours, alternate routes, barricades / guardrails will have to be used to direct the vehicles

to their destinations.

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Socioeconomic impacts. Like all major infrastructure projects, the Los Merinos WWTP and

complementary works will attract a significant flow of workers from other areas of the city and the country

to the intervention area. In this context, the social management plan will include the obligation for

contractors to have an acceptable code of conduct by which all workers shall abide, including

subcontractors.

Basic services. The decommissioning of the Sauce-Alborada and Guayacanes-Samanes stabilization ponds

should be carried out according to the corresponding Environmental Management Plan, minimizing the

impact on the Daule River and contemplating the possibility of using temporary or partial treatment

solutions.

Local economy and production systems. The final location of the reception and launching wells for the

tunneling equipment will be fixed in such a way as to minimize impacts to road traffic and access to roads

and businesses in the area. To achieve this, the installation of the wells in vacant lots and government

owned areas will be prioritized. The construction of the subaquatic outlet will imply the partial obstruction

of navigation activates in the Daule River. However, most of the ships that pass along the main stream in

the area are small fishing boat of shallow draft that will not be affected.

Job creation. The policy of contracting local labor will be extended to subcontractors, expecting for a

positive impact on the temporary generation of employment.

Social relations and involuntary resettlement. As part of the activities for Los Merinos WWTP and

complementary works, no significant impact is identified regarding the displacement of people affected

by the construction of the Project. For Los Merinos WWTP, the facility’s design identified just one affected

property. This residential building will have to be partially demolished to allow for the construction of Los

Merinos WWTP access road. Thus, the involuntary displacement of people is limited, being a discrete

impact with respect to the magnitude of the Project. However, the compensation measures must be

established in the corresponding resettlement plan.

Impact on public and occupational health. The contractor will be responsible for the design and

implementation of the required health and safety management program. As part of this program, health

and safety equipment and tools required to comply with local regulations, should be kept in an office or

other well-known place within the workplace. This should include the equipment needed to provide with

first aid to any person that could be injured as a result of construction activities, as well as establish the

procedure for the immediate transfer if needed to a hospital or to a doctor's office.

8.3. Operation phase

Air quality. According to the odor dispersion model developed, Los Merinos WWTP will significantly

reduce H2S emissions (and therefore odors) as compared to the stabilization ponds systems currently in

place. Thus, while odors (H2S) generated by existing stabilization pods can be perceived in a 2-km radius

area, with Los Merinos WWTP the associated odor footprint will be limited to a 100 to 200 m radius area.

Water quality. According the dilution model developed, the proposed treatment process manages to

comply with the pollutant concentrations limits established by applicable environmental legislation,

significantly improving the quality of effluents currently discharged to the Daule river from the northern

subsystem of Guayaquil.

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Land use and value. The implementation of the Los Merinos WWTP and ancillary facilities Project will

have a significant impact on land value (surplus) in the area of influence.

Transportation. During transmission pipeline maintenance works activities, impacts on traffic congestion

should be expected, mainly at Pedro Menéndez, Benjamín Rosales and Narcisa de Jesús avenues.

Depending on the type of maintenance, short detours, partial or total closure of the indicated routes may

occur.

Basic services. The operation of the Los Merinos WWTP will ensure the provision of adequate wastewater

collection and treatment services for 1,436,669 inhabitants of the city of Guayaquil for a 30-year service

period according to design. Therefore, it is considered to have a positive impact of high significance.

Safety and public health. The impact on public health due to the operation of the sewage system will be

positive as domestic wastewater collected in the northern subsystem will receive improved treatment

and discharged effluents to the Daule River will be of a better quality, containing lower concentrations of

fecal coliforms and pathogen organisms.

Job creation. Operation and maintenance activities may result in a limited demand unqualified labor

force. INTERAGUA will prioritize the hiring of local labor force.

9. Risk Analysis

Endogenous risks related to the project's activities are: construction, maintenance, operation, lifting,

dispersion of material, spillage of liquids, chemical substances and fuel on the ground, generation of noise,

combustion gases and of solid waste, activities of vegetation clearing, movements, excavation and

compaction of soils, operation and maintenance of equipment and machinery, installation/rupture of

potable water supply, sewerage and telephone systems, soil infiltration, handling and storage of chemical

substances, fires of the transformer by short-circuits/blackouts in the electrical system, and emission of

bad odors by the water treatment plant.

Exogenous risks - floods. In the project area there are heavy rainfalls during the winter, which in

combination with high tides and exposure to the El Niño phenomenon, could cause flash floods in the

treatment facility area. The preventive actions to be taken are: (i) the definition of meeting points for staff

in the event of evacuation; (ii) identification of adequate zones to store equipment and materials during

heavy rains and floods; (iii) and the establishment of a surveillance and alert mechanism.

Exogenous risks - earthquake. Guayaquil is located in front of the Nazca tectonic plates against the South

American plate, making this sector very vulnerable to earthquakes. The project area has a "high" seismic

hazard rating. The preventive actions to be taken are: (i) identification of safe areas for meeting and

evacuation; (ii) maintaining circulation routes free of obstacles; (iii) safely storing materials and equipment

that are not being used; (iv) developing an internal action and communication plan in the event of an

earthquake; and (v) constant practice of evacuation drills.

9.1. Design considerations to mitigate identified key risk factors.

Fire prevention. The different areas of the pumping station and treatment facility will be classified

according to the nature and relevance of fire risk. This classification will also be used to specify the

protection of equipment required according to harmful agents (humidity, sulphides, chemicals, electrical

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equipment). Additionally, forced ventilation of some environments will be put in place to guarantee the

non-concentration of gases that could cause harm. From a constructive point of view, construction

materials will be selected to ensure protection and structural resistance in the event of a fire. From a

functional point of view, all buildings will have clearly defined evacuation routes and emergency exits and

fire prevention and mitigation systems based on a risk analysis. The WWTP will have three fire protection

systems: (i) connecting the service water system of the treatment plan with the fire hydrant system; (ii)

connecting the fire hydrant system with the municipal water supply system; and (iii) the construction of

a dedicated water storage tank for fire extinguishing.

Earthquake. Geotechnical investigations and associated studies evidenced that the area where Los

Merinos WWTP will be constructed presents risks of liquefaction induced by earthquakes. In this context,

the design foresees a massive improvement of soils through the use of gravel columns, as well as by the

excavation and replacement of a layer in the soil with granular material with maximum defined particle

sizes, compacted to 90% of Modified Proctor. The purpose of replacing the material of the site is to provide

confinement to the tamped columns of gravel, avoid failure due to bulging, and to maintain the defined

spacings between columns. The use of tamped gravel columns at the site of the project would decrease

significantly, even in the most critical cases, the consequences of liquefaction in terms of susceptibility,

settlements and displacements.

Floods. Los Merinos WWTP has been designed as to protect it against floods and erosion risks. Key design

features such as, road and electrical equipment installation level, among others, has been defined

considering the possibility of sea level rise of a 100-year return period and a precipitation event in the

with a return period of 25 years, coinciding with a high tide condition in the Daule River (± 6 hours a day,

or a probability of 25%). The total probability of a precipitation event associated with a return period of

25 years (lasting less than 1 hour), occurring during high tide conditions in the Daule River, is equivalent

to a probability corresponding to a return period of approximately 100 years.

10. Environmental and social management system

Management system. As part of the environmental management system for the construction, operation

and maintenance of Los Merinos WWTP and ancillary facilities, an organizational structure with clear

responsibility allocations with respect to the various environmental and social issues will be established

for each project component. The information flows and environmental responsibilities of each

department, are or unit of the organization will be assigned and defined, including coordination

mechanisms between the relevant players, i.e. EMAPAG EP, Contractors, operator/concessionaire. The

system will ensure that the environmental and social policies adopted by EMAPAG’s contractors is clearly

understood and adopted by all members of the organization, as well as by their subcontractors, suppliers

and service providers.

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Environmental management committee. The Project Implementing Unit within EMAPAG EP (DEPM, in its

Spanish acronym) will constitute the Environmental Management Committee for the monitoring and

control of the environmental management activities of the Project. The committee will be led by an

environmental specialist of DEPM and will have the support of at least one professional representing each

actor involved in the Project, i.e. the environmental specialist from the contractor and independent

supervision company. This team will have the responsibility of executing, reporting and documenting the

environmental management activities associated with the project. The tentative organization chart of the

Management Committee of EMAPAG EP, is shown below:

Social management committee. The DEPM will also constitute the Social Management Committee for the

monitoring and control of the social management and community relations related activities of the

Project. The committee, which will include an advisory team, will be composed by officials from the Social

Communication - Community Management Directorate (DCS-GC) of EMAPAG and the social management

specialist of DEPM who will lead the Committee. The organization chart for the Social Management

Committee is indicated in the following figure:

Monitoring and evaluation. EMAPAG EP, through its contractors, must establish, implement and maintain

one or more procedures to monitor and regularly measure the fundamental characteristics of its

Contract Manager - PIU

Social Management Specialist -Contractor

Social Management Specialist -Supervision

PIU Social management

specialist

Advisory team DCS-GC

Contract Manager - PIU

Environmental Management Specialist -Contractor

Environmental Management Specialist -Supervision

PIU Environmental

management specialist

Figure 7: Organization of the Environmental Management Committee

Figure 8: Organization of the Social Management Committee

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operations that may have a significant environmental or social impact. As part of the evaluation of legal

compliance, environmental audits must be implemented by certified independent consulting companies.

As established by Ecuadorian environmental regulations, environmental auditing is a management tool

that encompasses a set of methods and procedures of a supervisory nature, which are used by the

Competent Environmental Authority to evaluate the environmental performance of a project, work or

activity. Environmental audits, however, should also include the evaluation of social aspects. EMAPAG EP,

through the audits of works, must establish, implement and maintain one or several procedures to deal

with real and potential nonconformities and take corrective actions and preventive actions when

necessary.

11. Environmental and Social Management Program and Associated Plans

11.1. Management plans included in the Environmental and Social Management Program

The Environmental and Social Management Program constitutes a set of plans, programs, procedures,

practices and actions that the developer, the contractor and the operator must implement to prevent,

eliminate, minimize, control and/or compensate for the negative impacts that the Project may induce in

the natural and/or social environment. The Plan also proposes the mechanisms to maximize those positive

impacts by the Project. In its general form, the ESMP includes specific plans for managing environmental

and social activities during the Pre-Construction Phase, as well as for the construction phases, project

operation, and finally for the closing and abandonment of the envisioned works.

In the pre-construction phase, measures are proposed that must be coordinated directly by the project

developer. For this specific stage, the program includes:

(i) Plan for the decommissioning of the Sauces-Alborada and Guayacanes-Samanes stabilization

ponds systems;

(ii) Social Management Plan;

(iii) Plan for the compensation / resettlement affected population.

For the construction phase of the project, the environmental management measures include specific

procedures and actions to be executed by the Project developer through the hired contractor for the

construction of the facilities. The EMP includes:

(i) Prevention and mitigation Plan;

- Mitigation and Control of Air Emissions;

- Management of supplies in working sites;

- Management of imported sand and gravel materials;

- Management of Flora and Fauna;

- Management of Archaeological and Cultural Resources;

(ii) Contingency and Risk Management Plan;

(iii) Training and Environmental Management Capacity Building Plan;

(iv) Health and Safety Management Plan;

(v) Waste Management Plan;

(vi) Community Relations Plan;

(vii) Rehabilitation Plan for affected areas;

Finally, for the operation phase of the Project, the program includes the following plans:

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(i) Prevention and mitigation Plan;

- Odor Mitigation and control

- Management of Flora an